Stocks 2 watch - 2010 ...

GROUP - A

1)YES BANK
2)FORTIS HEALTHCARE
3)CAIRN INDIA
4)BIOCON
5)THERMAX
6)OPTO CIRCUIT
7)TORRENT POWER

OTHERS

1)YUKEN INDIA
2)BALAJI AMINES
3)TASTY BITE EATABLES
4)GREAVES COTTON
5)NUCLEUS SOFTWARE
6)SETCO AUTOMOTIVE
7)EDSERV SOFTSYSTEMS
8)WPIL
9)SUBEX AZURE
10)SIMMONDS MARSHAL
11)SELAN EXPLORATION
12)NILE LTD
13)WEBSOL ENERGY
14)RANE ENGINE VALVES
15)FEDERAL-MOGUL GOETZE (INDIA) LTD
16)KIRLOSKAR OIL ENGINES
17)SPICE MOBILES
18)INTERLINK PETROLEUM
19)ITL INDUSTRIES
20)VESUVIUS INDIA

Management is Questionable >>>

Punj lloyd creates a lot of expectation among investors and called even as the second L&T .But always it disappoints by all means and expected to continue so in future. Quality of management is really questionable and
one can`t blame the investors even if they think this management is diverting funds from the company to somewhere they have personnel interest.Better to avoid Punj Lloyd and buy rewarding companies like Madhucon Project

Tasty Bite

The first part of the mission statement answers the question, what is the purpose: to be a values-driven organization that will make Tasty Bite a household name. Vasudevan elaborated to say the company has a value ecosystem with three pieces: the employees, the consumers, and the community.

The value provided to the consumers comes from the rest of the mission statement, which says Tasty Bite is a manufacturer and marketer of natural, convenient, specialty foods and promises consumers great taste, good value, and a range of cuisine through product innovation, low-cost manufacturing practices, customer partnerships, and a knowledge-driven, energetic, and fun work environment.

For the employees, the value program is broken into health and wellness, which refers to the company’s complete healthcare coverage and a unique practice: every meeting in every department starts with a minute or two of deep breathing. The second piece is learning and growth, which means Tasty Bite will help financially with any employee interested in going to school to further their knowledge base and will offer flexible schedules without reducing pay. The third piece, rewards and recognition, refers to Tasty Bite’s Spot Award, which is given to an employee to recognize a significant achievement that he or she recently pulled off.

The result has been that both current and pervious employees of Tasty Bite are ambassadors for the company, and the positive, creative environment at the company attract the best and the brightest.

The third facet of Tasty Bite’s value system refers to the company’s goal of positively impacting its community in any way possible. For example, because food manufacturing uses hundreds of thousands of liters of water per day, Tasty Bite recently installed a water conservation system that saves at least 10%, nearly 40,000 liters, every day. Enough, Vasudevan said, to sustain a village. Also this year, the company switched the fuel for its water boiler from fuel oil to sugar cane waster briquettes; 100% of all Tasty Bite products are thus manufactured with renewable resources.

This year also saw the beginning of a new partnership with the University of Wisconsin in Madison, which won a grant from the USAID organization to launch a farming outreach program. The school chose to work with Tasty Bite, and now the company’s farm is a demo site for teaching local farmers advanced techniques.

Tasty Bite has a few other longstanding traditions that better its community. For one, whenever there is a natural disaster, the company finds a way to send its food packets free of cost. Often, employees in the factory voluntarily choose to work a shift without pay to donate to the disaster relief. Since the products are healthy and don’t require refrigeration, they are perfect for the task. The company also matches every dollar the worker’s cooperative at the factory in India raises to put toward scholarships that will keep employee’s children in school from elementary all the way through post-graduate.

’We are not a large company, but we don’t think that matters,’ Vasudevan said. ‘We feel success is more than the profit at the end of the quarter; it is also the smiles we bring to the people we touch.’

Changing Lifestyles = Changing Fashions

Cravatex (BSE CODE 509472) is a company immensely getting benefit from the changing lifestyle of youth in India.It is one of the largest seller of Fitness and sports equipments under the brand name Proline Fitness. Now Company also offers a range of advanced international beauty therapies within spas across the country.

Proline is the pioneer in introducing the personal range of fitness equipments and it has 50 showrooms across the country. Nowadays our youth is paying much attention to their health and the financial result of this company is a testimony for this fact. Company is also running commercial gyms for companies like SBI. L & T, Microsoft….. etc . It is expanding very rapidly Pan India.

In December qtr company posted an EPS of Rs.12.56 v/s Rs.3.22 last year same qtr. For the nine month ended EPS is Rs.28.52 and full year is expected close to Rs.45/- Cravatex has a tiny equity of just 1.29 crore and out of this 75% is held by the promoters. Company is a unique one in the listed space and the business has huge potential . It is now trading just a P/E of 5 on the full year expected EPS.Buy for decent return in six months time.

More details are available from their website : http: //ww w.prolinefitness. in

Sell Compact Disc ...

So many times I have warned about the quality of this management.Everytime supporters of Compact disc claims that this is another infosys in making and it is recommended by this analyst or that analyst.Now everybody is convinced the real picture of its promoters by today`s announcement by the company which is reproduced below:
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Compact Disc - Clarification on Dividend for the year ended Mar 31, 2009
Announcement: Compact Disc India Ltd has informed BSE that:

`The chairman informed the members in the Extra Ordinary General Meeting held on November 30, 2009 that the Company was granted working capital limits by The Hongkong Shanghai Banking Corporation Ltd. The bank has charged excess interest and other expenses which were not in conform to the sanction letter, hence a dispute arises with the bank. The Company was expecting a settlement with the bank on or before the Extra Ordinary General Meeting. The dispute with the bank could not be resolved. The Company requires prior bank`s consent for payment of dividend.

The chairman requested the members to defer the proceedings of Extra Ordinary General Meeting in view of ongoing dispute with the bank. The members considered the request favourably and deferred the proceedings of Extra Ordinary General Meeting unanimously without taking any agenda item. The members also authorized the Board of Directors to hold another General Meeting to consider the agenda item.

Resultantly the dividend was not considered in the Extra Ordinary General Meeting held November 30, 2009, as the proceedings of Extra Ordinary General Meeting were deferred.`

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Where is all the advocates now ?????

Buy Tasty Bite !!!

Media and analysts are often give publicity to a company only after it has grown substantially and leave very little on the table for retail investors. We have seen this many times in the past like in the case of TRF , Bajaj Electricals .etc. Tasty Bite Etables (TBE) seems to be such a story which is yet to be unfold. TBE (BSE CODE -519091) is now promoted by Preferred Brand Foods India Pvt.Ltd which is the Indian arm of US based Preferred Brand Foods Inc. Promoters hold close to 75% share in this microcap (total equity is just 2.56 crore) Two Hyderabad based investors also holding another 6% in this company.Total share holders of this company altogether is only 1648 as per December share holding pattern ,which makes it a low liquid counter.

The company is based in Pune, India.
manufactures and markets a range of shelf stable, all-natural, ready-to-serve ethnic food products under Tasty Bite brand name. The company offers Indian and Thai food products, including entrees, meals, rice, and sauces. It also produces special diets, such as vegetarian, gluten-free, kosher, and vegan foods.95% of its income coming from exports . In India the company markets its products to institutional users, including hotels, quick-service restaurants, and other retail and corporate customers. .
Company is performing exceedingly well in recent years and its product getting very good response from US customers. Now ,Tasty Bite is the largest selling Indian Ethnic Food Brand in US.
Even in a difficult qtr for almost all export companies due to unfavorable $ value ,company could post more than Rs.7 /- EPS in December qtr v/s a loss in last year same qtr. For the nine months ended December ,company posted an EPS close to RS.20 v/s a loss of Rs.2/- in last year.

At a time of rising food prices world over ,cost of raw materials is playing a major role in food companies profit. Tasty bite is procuring more than 60% of vegetables from company’s own farms which is located in Pune , is an added advantage for the company.
Company is expected to post an EPS more than Rs.25/- in the full year v/s Rs.5.5 in last year. Tasty Bite is lead by Ashok Vasudevan and Ravi Nigam both having vast experience in this field and headed companies like Pepsico and Britannia in India. Considering the pace of its growth and commitment shown by the management it should be a dark horse and should touch atleast Rs.400 – 500 in future.

More details about the company is available from :

For US operations : ww w.tastybite dot com

For Australian operations : ww w.tastybite dot com dot au/